on what people earn. why is chained cpi so vital to the fiscal cliff negotiation? it isn't a spending cut or a tax hike, but it would foifly cut spending and raise taxes on some, saving the government an estimated $300 billion over the next decade. but the problem is that what that means is that senior, the longer they live, the less money they would actually take home. they would see a cut to their benefits. >> this was a concession from the democrats or was it just an accounting fix? >> it is both of those things. some democrats i spoke to said, look, maybe i would consider this, but only if we could have some sort of amerimechanism tha senior past age 85 would be facing a 6% or 8% cut in benefits, maybe there would be an adjustment to make sure especially for people who are very poor that there'd be some sort of safety net. you know, paul krugerman has said this is a horrible idea, terrible, stupid idea, and this is not something the white house should consider. >> let's bring back the rest of the panel. mohamed el-erian, ceo of pimco. mark zandi with moody's. mohamed, when you say we'